Norcod announced a few hours ago that it acquired Kråkøy Slakteri AS, a harvesting facility, which marks a step forward in its growth objective. With this acquisition, the company continues advancing towards integration and complete control of the value chain, solidifying its position in the industry.
"Led by our strategy for growth, this vertical integration of our value chain is a strategic step to improve our operations and create a robust and streamlined business model," said Christian Riber, CEO of Norcod.
The merger is expected to create operational synergies and enable cost-efficient operations in Norcod's value chain. For this reason, this acquisition brings greater predictability to the company's processes. "By owning Kråkøy Slakteri AS, we can ensure a smooth and efficient supply chain, from farming to processing, resulting in improved quality control and reduced costs." Stated the company on LinkedIn.
Kråkøy Slakteri has impressive figures, which stood at NOK 63 million (EUR 5,50 million/ USD 5,97 million) in profits in 2022 and an EBIT of around 5%. As a result of this acquisition, these figures will add to Norcod's free cash flow in the future.
Meanwhile, Roger Sørgård, CEO of Kråkøy, explained that this would help to meet the company's ambitions for growth. "Being part of Norcod will […] enable our efforts to scale our offering. Joining forces with Norcod is an acknowledgment of the success we have had serving the local market with harvesting services."
Norcod AS's engages in the commercial sea farming of cod and actively participates in the entire value chain. Norcod's existing fish farms are located in Mid-Norway with ideal conditions for cod. The company is contributing to blue ocean value creation with minimal impact on the environment while supporting local communities. The company lists itself on Oslo's Euronext Growth market.
Kråkøy Slakteri AS is a salmon slaughterhouse located in the municipality of Roan, Hongsand. Established in 1973 as a fish reception center, the company expanded into salmon farming in 1985. Thus, it plays a vital role in the municipality, providing a significant number of employment opportunities. Currently, employs approximately 50 people and is led by Roger Sørgård, son of the company's founder, Ole Sørgård.